Updates prices, adds analyst comment

JAKARTA, Aug 19 (Reuters) -Malaysian palm oil futures recovered on Monday, after trading sideways early in the session, but a stronger ringgit limited gains.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was up 6 ringgit, or 0.16%, at 3,687 ringgit ($843.71) a metric ton by midday.

The contract lost 1.79% last week, its fourth consecutive weekly drop.

"Palm oil futures is supported by bargain hunting after found support above 3,663 ringgit a ton but firm ringgit may limit upside," a Kuala Lumpur-based trader said.

The contract was traded in bound range of 3,663-3,705 ringgit per ton earlier in the session.

Malaysian ringgit, the contract currency of trade, strengthened 1.31% against the U.S. dollar on Monday, hitting its highest since mid-February 2023. A stronger ringgit made the contract less attractive for foreign currency holders.

Dalian's most-active soyoil contract DBYcv1 lost 0.46%, while its palm oil contract DCPcv1 gained 0.27%. Soyoil prices on the Chicago Board of Trade BOc2 was down 0.18%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Indonesia has revised its rules on its palm oil domestic market obligation (DMO) scheme, raising the price cap in a bid to improve supplies of cheap cooking oil, while lowering domestic distribution target to 250,000 tons monthly.

Palm oil FCPOc3 may revisit its Aug. 14 low of 3,638 ringgit per metric ton, driven by a wave (5), said Reuters technical analyst Wang Tao. TECH/C

($1 = 4.3700 ringgit)

Reporting by Bernadette Christina; Editing by Sherry Jacob-Phillips and Rashmi Aich

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